Decisions, Decisions: Buying Vs. Leasing

Summertime is one of the best times of year to purchase a new car. The days are longer, the sun shines brighter, and your brand spankin’ new car has an opportunity to be the star of the roadways. If you’re in the market for a new set of wheels, you may be engaging in the great buying vs. leasing debate. Check out some of the advantages and disadvantages of both in this article, and then take our online quiz to help you make your choice!

When it comes down to it, what should influence your decision most is your lifestyle, not necessarily your financial situation.

Do you particularly love that new car smell and have an urge to always have what’s new? Leasing might be for you. But if you get emotionally attached to your car and tend to spend so much time in it, it’s like a second home then buying is probably your better option.

See, it’s tough to just look at the financial aspects to make a decision. Leasing is attractive to some people because they focus on the low down payment and low monthly payments. Yet, those who choose to buy, while they may be paying more per month at first, will eventually see those car payments get smaller and smaller, and depending on the vehicle’s lifetime, they’ll go away entirely. Then again, lessees typically enjoy very low maintenance costs since the typical duration of a lease falls within most manufacturer warranty lengths; yet, car owners usually find that maintenance costs increase as the car gets older.

Additionally, a lessee won’t have to handle the burden of a car’s depreciation; this responsibility falls on the dealer. At the same time, although an owner’s car will depreciate in value, it’s likely that it can eventually be sold at least for some portion of the original price.

Another thing to take into consideration is the type of car you want. If you simply have to have that model that is outside of your price range, then considering your lease options is a good idea, as many lease offers could make getting behind the wheel of that vehicle a possibility. Or if you’re someone who takes pride in equity and ownership and wants to come out on top when it comes to value in the long run (think 10 years down the road), then you’re probably more suited for buying.